The Public Investment Fund (PIF), His Highness Prince Saud bin Fahd bin Abdulaziz, and Sultan Holding Company-owned Golden Lattice Investment Company (GLIC) have completed the first phase of the sale and leaseback of Zain KSA's passive physical tower infrastructure. Out of the 8069 towers, at least 3,000 telecom tower assets must be transferred as part of the acquisition procedure. The remaining towers will be acquired over the course of the next 18 months. The overall transaction cost is SAR 3.03 billion, of which SAR 2.4 billion was paid in cash and the remaining 20% of GLIC was acquired by Zain KSA through in-kind contributions. The agreement is anticipated to have a financial impact of up to SAR 1.1 billion if it is finalized.
The passive, physical infrastructure of Zain KSA and its supporting facilities are the only things included in the acquisition deal. Smart software, wireless antennae, technology, and intellectual property are all still in use.
Eng. Sultan Bin Abdulaziz Al-Deghaither, Chief Executive Officer at Zain KSA, commented on this significant achievement by saying, "We are proud of our strategic partnership with the PIF, one of the largest sovereign wealth funds in the world, His Highness, Prince Saud bin Fahd bin Abdulaziz, and Sultan Holding Company, as this reflects Zain KSA's enormous investment portfolio across the national ICT sector. In line with the goals of Saudi Vision 2030, it will also open up new frontiers to attract more knowledge and cutting-edge technology and support our strategic role to promote digital transformation and contribute to a vibrant knowledge-based economy.
"This deal will push us towards a new stage of corporate growth by keeping up with the global trend of separating ownership, operation, and maintenance of the towers and investing the returns in innovation and expanding our services," Al-Degaither stated. This will improve the user experience, optimize Zain KSA's revenue, and increase the financial value of both the company and the investor. "The transaction will catalyze Zain KSA's ongoing development process to focus our core operations on innovation and the development of the telecoms sector and deliver a rewarding customer experience, deploying the latest technologies and digital services through the largest 5G network in the region," the executive continued. We will continue to provide top-notch vertical expansion services while also providing a range of cutting-edge digital applications and solutions through Zain Cloud, which has received a Class (C) classification from the Communications, Space, and Technology Commission (CST). The fourth industrial revolution (Industry 4.0) and smart city applications will also be expanded, and we'll continue to invest in the nearby markets where we've had great success. One such market is Tamam Financing Company, the first Saudi firm to receive a license from the Saudi Central Bank (SAMA) for consumer microfinance in the Kingdom. Thanks to its user-friendly, Shariah-compliant, integrated digital experience and its recent expansion into offering Murabaha financing to numerous traditional and e-stores in the technology and education sectors, Tamam has seen excellent growth in 2022. Through PLAYHERA MENA, we have also made investments to grow the e-sports industry in the Kingdom.
